UK small firms see slide in exports ahead of Trump tariffs
A large number of small UK businesses suffered a decrease in overseas sales compared to those who saw an increase, a new survey has said, as President Donald Trump’s tariffs put firms on edge.
Heavy US tariffs on vehicles and aluminium have rattled dozens of UK firms while impending ten per cent tariffs on goods, which are set to come into effect in three months, could see trade plummet.
But new research by the British Chambers of Commerce (BCC) suggests that many small businesses were already suffering from low sales before sweeping tariffs were introduced.
Its trade confidence outlook report – a survey of 1,800 small and medium-sized firms (SMEs) – showed that over a quarter of exporters reported a decrease in export sales in the first three months of the year.
It represented a sharp rise from pre-pandemic levels as only 14 per cent of SME exporters said they were selling less overseas in mid-2018.
Nearly a third of manufacturers experienced a decline in sales, pointing to deeper problems within the sector at large in the UK.
The government is locked in intense discussions with the US to secure a trade deal.
Chancellor Rachel Reeves is set to meet with her treasury secretary counterpart Scott Bessent while US vice-president JD Vance has suggested in an interview with UnHerd that the UK is at the front of the queue in trade negotiations.
White House press secretary Karoline Leavitt said on Wednesday that agreements would be announced “very soon”.
William Bain, who is in charge of trade policy at the BCC, said President Trump’s threats between January and March impacted trade levels as he called on the government to expand trade ties with the UK’s closest allies.
“We believe the Government has adopted the right strategy for tariffs of negotiation not retaliation, and the signals from the White House are there is a deal to be done,” Bain said.
“It is also right to pursue a closer trading relationship with the EU and to point businesses towards the burgeoning opportunities in the Indo-Pacific region.”
“The next few years will be pivotal for the UK’s export success for decades to come.”